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or other time or demand deposits in that bank or credit union constitutes

Payment of benefits. For purposes of section 4951, a payment out of

a lending of money;

assets or income of a trust described in section 501(c)(21) for the

The furnishing of goods, services, or facilities by a disqualified person

purposes described in sections 501(c)(21)(A)(i)(I) and

to such a trust is not an act of self-dealing if the furnishing is without

501(c)(21)(A)(i)(IV) is not considered an act of self-dealing.

charge and if the goods, services, or facilities so furnished are used

exclusively for the purposes specified in section 501(c)(21)(A); and

Taxable Expenditures (Section 4952)

The payment of compensation (and the payment or reimbursement of

expenses) by such a trust to a disqualified person for personal services

Taxable expenditure. For purposes of section 4952, the term “taxable

that are reasonable and necessary to carry out the exempt purpose of

expenditure” means any amount paid or incurred by a trust described in

the trust is not an act of self-dealing if the compensation (or payment or

section 501(c)(21) other than for a purpose specified in that section.

reimbursement) is not excessive. See Regulations section 53.4951-1 for

additional information.

Correction. The terms “correction” and “correct” mean, with respect to

any taxable expenditure, placing the trust in a financial position not

Taxable period. The term “taxable period” means, with respect to any

worse than that in which it would have been if the taxable expenditure

act of self-dealing, the period beginning with the date on which the act of

had not been made:

self-dealing occurs and ending on the earliest of:

1. By recovering all or part of the expenditure to the extent recovery

1. The date of mailing of a notice of deficiency under section 6212,

is possible, and

with respect to the tax imposed by section 4951(a)(1),

2. When full recovery is not possible, by contributions by the person

2. The date on which the tax imposed by section 4951(a)(1) is

or persons whose liabilities for black lung benefit claims (as defined in

assessed, or

section 192(e)) are to be paid out of the trust.

3. The date on which correction of the act of self-dealing is

completed.

Taxable period. The term “taxable period” means, with respect to any

taxable expenditure, the period beginning with the date on which the

Amount involved. The term “amount involved” means, for any act of

taxable expenditure occurs and ending on the earlier of:

self-dealing, the greater of the amount of money and the fair market

1. The date of mailing a notice of deficiency under section 6212

value (FMV) of the other property given or the amount of money and the

with respect to the tax imposed by section 4952(a)(1), or

FMV of the other property received. However, in the case of services

described in section 4951(d)(2)(C), the amount involved is only the

2. The date on which the tax imposed by section 4952(a)(1) is

excess compensation. For purposes of the preceding sentence, the

assessed.

FMV:

Specific Instructions

1. For the initial taxes imposed by section 4951(a), is determined as

of the date on which the act of self-dealing occurs; and

Line 22. A “conformed” copy is one that agrees with the original

2. For additional taxes imposed by section 4951(b), is the highest

document, and all amendments to it. If the copies are not signed, they

FMV during the taxable period.

must be accompanied by a written declaration signed by an officer

authorized to sign for the organization certifying that they are complete

Correction. The terms “correction” and “correct” mean, for any act of

and accurate copies of the original documents.

self-dealing, undoing the transaction to the extent possible, but in any

Chemically or photographically reproduced copies of articles of

case placing the trust in a financial position not worse than that in which

incorporation showing the certification of an appropriate State official

it would be if the disqualified person were dealing under the highest

need not be accompanied by such a declaration. See Rev. Proc. 68-14,

fiduciary standards.

1968-1 C.B. 768, for additional information.

Disqualified person. The term “disqualified person” means, for a trust

Line 23. If you answered “Yes,” to 23a(1), (2), (3), (4), or (5) and “No,”

described in section 501(c)(21), a person who is:

to 23b, notify each self-dealer and trustee who may be liable for initial

1. A contributor to the trust;

taxes under section 4951 of the requirement to file a return for each year

(or part of a year) and pay the applicable tax. The trust must also furnish

2. A trustee of the trust;

the information required by Schedule A (Form 990-BL), Part I, Section A

3. An owner of more than 10% of:

(other than columns (g) and (h)) on its own return.

a. The total combined voting power of a corporation,

For exceptions to the self-dealing rules, see Special Rules and

b. The profits interest of a partnership, or

Payment of Benefits, earlier.

The beneficial interest of a trust or unincorporated enterprise,

Line 24. If you answered “Yes,” complete Part I, Section B (other than

which is a contributor to the trust;

column (h)) and Part II of Schedule A (Form 990-BL). The trust must also

4. An officer, director, or employee of a person who is a contributor

notify any trustees who may be liable for initial taxes under section 4952

to the trust;

of the requirement to file Form 990-BL, Schedule A (Form 990-BL), and

to pay the tax.

5. The spouse, ancestor, lineal descendant, or spouse of a lineal

descendant of an individual described in 1, 2, 3, or 4;

Line 25. If you answered “No,” or if there were multiple acts or

6. A corporation of which persons described in 1, 2, 3, 4, or 5 own

transactions giving rise to Chapter 42 taxes and all of them were not

more than 35% of the total combined voting power;

corrected, attach an explanation of each uncorrected act including the

names of all parties to the act, the date of the act, the amount involved,

7. A partnership in which persons described in 1, 2, 3, 4, or 5 own

why the act has not been corrected, and the date you expect correction

more than 35% of the profits interest; or

to be made.

8. A trust or estate in which persons described in 1, 2, 3, 4, or 5

Line 26. List each of the organization's officers, directors, trustees, and

hold more than 35% of the beneficial interest.

other persons having responsibilities or powers similar to those of

For purposes of items 3a and 6 above, indirect stockholdings are

officers, directors, or trustees. List all of these persons even if they did

taken into account if they would be taken into account under section

not receive any compensation from the organization. Show all forms of

267(c), except that, for purposes of this paragraph, section 267(c)(4) is

compensation received by each listed officer, etc. Enter “-0-” in columns

treated as providing that the members of the family of an individual are

(c), (d), and (e) if none was paid.

only those individuals described in item 5. For purposes of items 3b and

Note. If you pay any other person, such as a management service

c, 7, and 8, the ownership of profits or beneficial interests is determined

company, for the services provided by any of your officers, directors,

by the rules for constructive ownership of stock provided in section

trustees, or key employees, report the compensation and other items on

267(c) (other than paragraph (3)), except that section 267(c)(4) is

line 26 as if you had paid the officer, etc. directly.

treated as providing that the members of the family of an individual are

only those individuals described in item 5.

Column (b). In column (b), a numerical estimate of average hours per

week devoted to the position is required for a complete answer. Phrases

such as “as needed” or “as required” are unacceptable.

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Instructions For Form 990-Bl - Information And Initial Excise Tax Return For Black Lung Benefit Trusts And Certain Related Persons Page 4

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